What will be the compound interest on Rs. 14,000 for 2 years at the rate of 10% per annum compounded annually?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is Option 4 i.e. Rs. 2,940.
CI = P[(1 + R/100)n - 1]
= 14000[(1 + 10/100)2 - 1]
= 14000[(11/10)2 - 1]
= 14000[(121/100) - 1]
= 14000 × (21/100)
= 2940